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Business Strategy Assignment Sample | Tesla Company

   

Added on  2021-02-20

24 Pages5298 Words562 Views
Business StrategyUnit – 32

EXECUTIVE SUMMARYBusiness strategy refers to the combination of the all the actions, plans, moves,activities and tactics which is undertaken by the company for the completion of itsobjectives and gain competitive advantages (Chang, 2016). Present report will highlight the external, internal and competitive factors for theorganization. It will also analysis the various strategic directions that company can adoptfor the growth of the business and operations. Report will also demonstrate the strategicmanagement plan for the company. It will also recommend about how to improve thebusiness and its operations.

Table of ContentsEXECUTIVE SUMMARY...................................................................................................2INTRODUCTION...............................................................................................................1LO1 ...................................................................................................................................2Pestle analysis of the Tesla Company...........................................................................2Stakeholders analysis of the Tesla Company................................................................5LO2....................................................................................................................................6Swot analysis of the Tesla Company.............................................................................6VRIO analysis of the Tesla Company............................................................................8LO3....................................................................................................................................9Porter's five competitive forces model of the Tesla Company.......................................9LO4..................................................................................................................................12Explanation of various strategic directions available to the Tesla Company...............12Justification of the one strategic direction which is beneficial for the Tesla Company16Produce a strategic management plan for the Tesla Company..................................16CONCLUSION AND RECOMMENDATION....................................................................18REFERENCES ...............................................................................................................20BIBIOGRAPGHY.............................................................................................................22

INTRODUCTIONOverview of the companyTesla Inc. is an American company who is working under the Automotive andEnergy storage industry. It was established on 1st July 2003 by Martin Eberhard, MarcTarpenning, Elon Musk, J.B. Straubel and Ian Wright. Its headquarters is in Palo Alto,California, United States. This company is manufacturing and selling electric cars, solarpanels, power wall, power pack batteries, solar roof tiles and related products etc.(Moritz and et.al., 2015, p. 90). Objectives of the companyFollowings are the objectives of the Tesla - Increase the demand and sales of the electric car.Increase the market share of the company.Give education to the customers regarding safe driving.Mission of the companyTo deepen the transformation of world by sustainability of energy resources.Core values of the companyCore values of the company are as follows - Committed to electric vehicles.Speeding the evaluation.A method to storage energy.1

LO1 Pestle analysis of the Tesla CompanyThere are various external environmental factors which impact the whole industryand in turn impact the organization. There are some external factors which impact theTesla Company. Thus, analysis of these factors are important and is done by Pestleanalysis. Pestle analysis of the Tesla Company are as follows - Political FactorsPolitical factors are those factors which influence the business by thegovernment of the country. Government and its related aspects influence the industrywhich in turn impact the business positively and negatively. Example of political factorsare change in government parties, tax policies, monetary policy, political conditions ofthe country, political stability and foreign trade policy etc. Government of United States are providing incentives to all those companieswho are working under the Energy storage industry which lead Tesla to get incentives2Illustration 1: Factors of Pestle AnalysisSource: Scanning the Environment: PESTLE Analysis, 2016.

which in turn improve its financial performance. On the flip side, there are a lot ofcountries where tax rates are high which lead company to pay out more from its profits(Scanning the Environment: PESTLE Analysis, 2016). Due to government instability inUnited State, Company has to face challenges regarding government policy which keptchanged with time to time. Economic FactorsEconomic factors are those factors which influence by the economic conditionsand economic aspects of the country. There are various factors which influence theindustry and in turn impact the activities of firms. These factors are as follows – pricingof the products in market, economic cycle of the country, foreign exchange rates,inflation rate, employment & unemployment rate, consumers' demand pattern &purchasing power, interest rates and saving rates etc. Due to environmental conscious, consumers are demanding electric vehicleswhich lead to increase the sales of the industry and in turn increase the revenue of theTesla Company. On the opposite side, due to a lot of economic instability in Asianmarket, industry and company's sales are getting impacted which lead to reduction intheir profitability. Due to increasing demand, company has to take loan from banks athigh rates which lead to low profitability of the company. Socio-Cultural FactorsIt includes following factors such as demographic structure of the country, familystructure, cultural aspects, customs, values, lifestyles of the customers, educationconditions and communities structures etc. These all factors are related to the socialconditions of the population of country which impact the industry as well as companies(Bentley-Goode, Newton and Thompson, 2017, p.65). In case of Tesla Enterprise, Due to reduction in low carbon lifestyles, Automotiveindustry are getting benefits which lead encourage company to manufacturing advanceelectric vehicles. Due to unequal distribution of income, middle and lower class familiesare not able to purchase the electric cars which cause company not to achieve itsobjectives properly. Due to change in customers' perception towards environment,Company are getting benefits as their products are purchasing by the customers. Technological Factors3

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